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Last week, we learned that the S&P/Case Shiller indexes of single-family house prices hit multi-year lows in November, after rising briefly earlier in the year.

Will house prices finally bottom out this year?

Jan Hatzius

Chief Economist, Goldman Sachs Yes, by late 2012, but near-term declines still seem likely, based on the still-large excess supply in many markets. House prices now appear fairly valued based on demographic trends, income, cost of capital and construction costs.

Neil Dutta

U.S. Economist, Bank of America-Merrill Lynch No. We expect home prices to fall another 6% to 7% through the first quarter of 2013. A temporary lull in foreclosure liquidations has helped give the illusion of a bottom, but a foreclosure inventory overhang that is fairly widespread still remains.

Mark Zandi

Chief Economist, Moody's Analytics Yes. Foreclosures will peak after state attorneys general settle with mortgage servicers later this year. Investor demand should limit price declines to less than 5%.

Ian Shepherdson

Chief U.S. Economist, High Frequency Economics Sales are set to rise sharply this year, thanks to the easing of mortgage-lending conditions, very low mortgage rates and the improvement in the labor market. Prices should stabilize by summer.

-- Gene Epstein

Last Week: Review

In Your Facebook

Facebook filed for an initial public offering that could value it at as much as $100 billion, one of the largest-ever debuts. The social-networking company, which derived $1 billion of profit last year from $3.71 billion of revenue, mostly from advertising, is looking to raise as much as $10 billion in its offering this spring. See "At Long Last, Facebook."

Juiced Jobs

January's unexpectedly strong jobs report provided more evidence the economy is picking up. U.S. employers added 243,000 jobs, twice the number forecast, and the jobless rate unexpectedly dropped to 8.3% from December, the lowest in nearly three years. Stocks surged, with the Dow hitting its highest level since 2008 and the Nasdaq at an 11-year high. Treasury prices, which move inversely to yields, fell.

Jumpin' January

U.S. equities hit the ground running in January, with the Dow Jones Industrial Average rising 3.4%, or 415.35 points, its largest January point gain in history. Full-year results for the DJIA have followed January's direction 75% of the time. The Standard & Poor's 500 index also jumped, by 4.36%, and had its largest January point gain in history, 54.81. The Nasdaq Composite Index surged 8.01%, or 208.69 points, in the month.

Happier Days

Fed Chairman Ben Bernanke said some economic indicators have "shown some signs of improvement." The central-bank chief told the House Budget Committee the economy is still vulnerable to shocks, and that the budget deficit needs to be cut. Meanwhile, the Congressional Budget Office forecast a $1.1 trillion deficit for 2012, assuming the payroll tax cut is extended. It said tax increases and spending cuts scheduled for 2013 would slow the economy.

A European Deal

All but two of the European Union's 27 states agreed to a German-led pact for stricter budget discipline. EU leaders also endorsed an agreement on a permanent rescue fund.

Roll On

U.S. light-vehicle sales jumped to their fastest pace in nearly four years in January, rising by a seasonally adjusted annual rate of 14.1 million. U.S. retailers also did well.

Cutting Room

American Airlines parent
AMR
said it will try to cut 13,000 jobs and terminate pensions in an attempt to save $2 billion in annual costs.

Talk of a Tie-up

Xstrata
is in talks with
Glencore International0805.HK 0.9790209790209791%Glencore PLCHong KongHKD36.1
0.350.9790209790209791%
/Date(1425420064000-0600)/
Volume (Delayed 15m)
:
52500
P/E Ratio
18.87543399769356Market Cap
468880505329.575
Dividend Yield
5.157174515235457% Rev. per Employee
16491800More quote details and news »0805.HKinYour ValueYour ChangeShort position
about a merger that would create one of the world's biggest miners. Xstrata, which is 34%-owned by Glencore, said Glencore approached it for a merger of equals but hasn't made an offer.

In Brief

• SAC's Steven Cohen is close to buying a $20 million stake in the N.Y. Mets, Bloomberg reported.